Roper with Record Second Quarter 2005 Results


Roper Industries, Inc. reported record results for the second quarter ended June 30, 2005. Diluted earnings per share (DEPS) were $0.82 in the quarter. Cash flow from operating activities grew 56% over the prior year to $63 million, which represents 176% of net earnings.

EBITDA improved 57% to $80 million. Second quarter 2005 results include $0.02 per diluted share of tax benefits.

"Our focus on cash performance has led to strong results across our businesses," said Brian Jellison, Roper's Chairman, President and CEO. "We continue to make progress in improving margins and working capital efficiency, with second quarter EBITDA margins increasing year-over-year to 22.0% and net working capital decreasing to 17.3% of sales. Our growing cash flow supports our strategic acquisition program, including the recently announced acquisition of CIVCO." CIVCO is a supplier of diagnostic and therapeutic disposable products used in conjunction with ultrasound imaging for minimally invasive procedures.

Roper reported net sales of $362 million in the second quarter, 56% higher than the prior year period. These results reflect the Company's 11% internal growth in the second quarter, including strong internal growth in each of its reporting segments. Second quarter results also include substantial contributions from Roper's recent acquisitions of two market leaders in the radio frequency (RF) market, TransCore and Inovonics. The Company achieved record orders of $364 million in the second quarter, an increase of 63%, including internal order growth of 15%.

"Our recent acquisitions are performing well," said Mr. Jellison. "At the same time, our other businesses continue to benefit from our broad-based programs to improve distribution, capture market adjacencies and create innovative customer solutions. Our internal growth produced strong operating leverage, which exceeded 40% in the second quarter. We remain confident of our growth prospects this year."

The Company raised its full year minimum EBITDA guidance from $314 million to $325 million. The Company also raised its full year DEPS guidance to $3.20-$3.35 from $3.15-$3.35, and initiated third quarter guidance of $0.84-$0.90. Today the Company separately announced a two-for-one split of its common stock in the form of a 100% stock dividend, to be distributed on August 26, 2005 to shareholders of record at the end of the day on August 12, 2005. The Company's results and projections do not include the effects of this dividend.

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